Anand Rathi Wealth Limited is one of country’s top non-bank wealth services companies, with gross commission generated in Fiscal 2020 placing them among the best three non-bank mutual fund distributors in the nation. Anand Rathi Wealth IPO will hit the market in 02 December 2021.
Table of Contents
About
Anand Rathi Wealth Limited provide wealth management, financial product distribution, and technological services to a diverse group of clientele.
They mainly offer services via their Private Wealth vertical, which manages Rs. 260.58 billion in AuM as of March 31, 2021.
The AuM is made up of all 3rd-party assets that produce commissions or incomes, either upfront or on a trail basis, and custody holdings of their customers.
They do not include customers who only have a custody account with them, including a demat account, but no wealth assets including mf.
Even though they may be in their Group’s control, the value of promoter stakes in businesses in their AuM is not included in the AuM.
Clientele
Customers or active customer families are defined as those with a cumulative AuM of at least Rs. 5 million. Every ‘client family’ or ‘Client’ may participate via one or more sub-accounts or family member accounts. They truly think they have established a leading position in the allocation of financial products.
With an emphasis on the increasing HNI segment, by providing a simple, comprehensive, and streamlined offering provided by an entrepreneurial squad of private wealth experts classified as Relationship Managers (“RMs”).
PW vertical serves 6,109 active customer families with a staff of 233 RMs as of March 31, 2021. (including 8 RMs working on contractual basis).
Growth and Footprints
They think that the HNI category of clients (those with a net worth of about $50 million and $500 million) is an appealing and neglected section in terms of service quality, and that building a system to support this group is time-consuming and challenging.
As of March 31, 2021, 52.33 percent of their Clients had been with us for more than three years, accounting for 72.19 percent of their total PW AuM, demonstrating their dominance in both client vintage and AuM in their company.
They now have offices in 11 Indian cities, including Mumbai, Bengaluru, Delhi, Gurugram, Hyderabad, Kolkata, Chennai, Pune, Chandigarh, Jodhpur, and Noida, as well as a representative office in Dubai.
Anand Rathi Wealth IPO
Anand Rathi Wealth, headquartered in mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of up to 12,000,000 equity shares on 19 July, 2021.
There will be no fresh issue & OFS (Offer for sale) of 12,000,000 equity shares from existing Promoters mentioned in the DRHP of the company.
They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.
Financials Trends
| Particulars | For the year/period ended ( in Cr.) | ||||
|---|---|---|---|---|---|
| 31-Mar-21 | 31-Mar-20 | 31-Mar-19 | |||
| Total Assets | 339.44 | 409.06 | 230.83 | ||
| Total Revenue | 279.25 | 336.41 | 284.19 | ||
| Profit After Tax | 45.11 | 61.61 | 58.43 | ||
Basic and Diluted Earnings Per Share (EPS)
| Financial Period | Basic EPS (in INR) | Diluted EPS (in INR) | Weight |
| Financial Year 2021 | 11.02 | 10.87 | 3 |
| Financial Year 2020 | 15.16 | 7.92 | 2 |
| Financial Year 2019 | 14.67 | 14.40 | 1 |
| Weighted Average | 13.01 | 12.82 |
Objects of the Issue
- Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
- To meet common corporate objectives.
Basis of The offer
The following are among the basic parameters that go into determining the Offer Price:
- Emphasis on the HNI sector, which is undeserved and less price conscious.
- Clients are provided simple, comprehensive, and standardized solutions centered on an objective-driven strategy.
- Non-bank mutual fund distributor having a strong footprint in structured products in India.
- Value-added services, such as safety net and estate preparation, should be prioritized.
- Through an innovative work culture, a unique strategy to recruiting and keeping talent has been developed.
- Marketing initiatives are approached in a special manner.
Anand Rathi Wealth IPO Peer Comparison
| S. No. | Company Name | PE |
| 1 | IIFL Wealth Management Ltd | 42.24 |
Anand Rathi Wealth IPO Details
| IPO Opening Date | 02 December 2021 |
| IPO Closing Date | 06 December 2021 |
| Issue Type | Book Built |
| Face Value | 5 per share |
| IPO Price | 530 to 550 per equity share |
| Market Lot | 27 |
| Minimum Amount | 14850 |
| Listing At | BSE, NSE |
| Issue Size | 12,000,000 Equity Shares |
| Fresh Issue | 0 |
| Offer for Sale | 12,000,000 Equity Shares |
Anand Rathi Wealth IPO Dates
Anand Rathi Wealth IPO opening date is 02 December 2021, and the closing date 06 December 2021. The issue may list in 14 December 2021.
| IPO Open Date | 02 December 2021 |
| IPO Close Date | 06 December 2021 |
| Basis of Allotment Date | 10 December 2021 |
| Initiation of Refunds | 11 December 2021 |
| Credit of Shares to Demat Account | 13 December 2021 |
| IPO Listing Date | 14 December 2021 |
Basis of Allotment
| Type | % of Offer | Basis of Allotment |
|---|---|---|
| Qualified Institutional Buyer | 50 |
Roughly equivalent
|
| Non Institutional Investor | 15 |
Roughly equivalent
|
| Retail | 35 | Minimum 1 lot based on availability |
Anand Rathi Wealth IPO Allotment Status
Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.
Here, you can find the Allotment Status of Anand Rathi Wealth IPO.
Anand Rathi Wealth IPO GMP
Anand Rathi Wealth IPO Grey Market Premium is INR 50.
| Date | GMP (in Rs) | Subject to Sauda | Kostak (in Rs) |
| 13 December 2021 | 50 | 3400 | 350 |
| 12 December 2021 | 54 | 2100 | 250 |
| 11 December 2021 | 40 | 1400 | 200 |
| 10 December 2021 | 47 | 4800 | 550 |
| 09 December 2021 | 35 | 3600 | 300 |
| 08 December 2021 | 29 | 1900 | 200 |
| 07 December 2021 | 17 | 900 | 100 |
| 06 December 2021 | 54 | 1000 | 100 |
| 05 December 2021 | 85 | 1200 | 100 |
| 04 December 2021 | 121 | 2400 | 250 |
| 03 December 2021 | 108 | 2100 | 200 |
| 02 December 2021 | 120 | 2300 | 250 |
| 01 December 2021 | 122 | 1900 | 200 |
Anand Rathi Wealth IPO Review
If you are looking for the answer that Anand Rathi wealth IPO is good or bad then the answer is you can apply for this IPO for small listing gains & with long term view. However, big listing gains are not looking on the cards.
Anand Rathi Wealth IPO Risk
- The impact of the COVID-19 epidemic on their company and activities will be difficult to predict.
- Their financial product distribution and sale revenues are based on their ability to maintain their AuM growth as well as the effectiveness of the funds they distribute. Some modifications in the overall expense ratio as a result of regulatory changes might result in a reduction in their distribution commission income.
- Non-compliance with legal standards and directions/observations made by government entities during inspections might have a significant negative impact on their business.
- Their market share may be affected by competition from current and new market competitors in their industry.
Other Threats
- Their distribution agreement with AMCs may be cancelled at any time, with or without warning, or owing to their inability to comply/perform.
- Their outcomes are also influenced by the power and repute of the ANANDRATHI brand, as well as other Anand Rathi Group businesses.
- There are pending legal procedures against their company, subsidiaries, promoters, directors, and group companies, which, if found in their favour, might have a negative impact on their business.
- Security breaches involving the sensitive information of their clients, which they keep, may affect their reputation.
- They may not be able to properly manage or accurately disclose their financial risks if they are unable to keep an appropriate level of internal checks.
Anand Rathi Wealth IPO Brokerage views
- Yes Securities : Not Updated
- Choice Brokering: Not Updated
- Axis Securities: Not Updated
- IIFL Securities: Not Updated
- Trade swift: Not Updated
- Anand Rathi : Not Updated
- ICICI Securities: Not Updated
Anand Rathi Wealth IPO Subscription Status
| Date | Day | QIB | NII | Retail | Employees | Total Subscription |
| 02 December 2021 | 1 | 0.17 | 1.71 | 2.10 | 0.08 | 1.42 |
| 03 December 2021 | 2 | 0.17 | 3.06 | 4.77 | 0.66 | 3.02 |
| 06 December 2021 | 3 | 2.50 | 25.42 | 7.76 | 1.32 | 9.78 |
Promoters
- Mr. Anand Rathi
- Mr. Pradeep Gupta
- Anand Rathi Financial Services Limited
Promoters Holding
| Pre Issue Share Holding | 61.45% |
| Post Issue Share Holding |
Anand Rathi Wealth IPO Prospectus
Contact Details
Anand Rathi Wealth Limited
Express Zone, A Wing, 10th Floor, Western Express Highway,
Goregaon (E), Mumbai 400 063, Maharashtra, India
Telephone: +91 (22) 6281 7000
E-mail: [email protected]
Website: www.rathi.com/wealth
Registrar
Link Intime India Private Limited
C-101, 1st Floor, 247 Park,
Lal Bahadur Shastri Marg,
Vikhroli (West),
Mumbai 400 083, Maharashtra , India
Telephone: +91 22 4918 6000
E-mail: [email protected]
Website: www.linkintime.co.in
Lead Manager(s)
- Equirus Capital Private Limited
- BNP Paribas
- IIFL Securities Limited
- Anand Rathi Advisors Limited
We hope we are able to answer all your questions about Anand Rathi Wealth IPO. If you don’t have a Demat account, open it now with Zerodha best trading app.
Clarification
The reference of IPO Grey Market Premium (IPO GMP) is only valid for the date specified in the header.
On the IPO Grey Market, we do not purchase or sell IPO forms.
The Kostak Rate is the profit earned by selling an IPO application (in an off-market transaction) to somebody else before the issue is allotted or listed.
Do not subscribe to an IPO based solely on the premium price, as it may alter at any time before to the listing. Only consider the fundamentals of the companies when subscribing.
The GMP rates for IPOs are based on market intelligence. Please keep in mind that these IPO GMP rates may vary by geography and market.
Note:
We do not engage in grey market trading or facilitate the purchase or sale of IPO forms.
What is Grey Market?
The phrase “grey market” refers to an illegal over-the-counter market where IPO applications and IPO stock are traded before the entity is listed on a stock exchange. This is a technique for dealers to help consumers who wish to sell their home before it goes on the market.
This is also a way to increase the listing fee and provide help for the issue prior to the listing. In the IPO grey market, there are two types of transactions that take place:
- IPO stocks are traded at a premium in the grey market.
- At a kostak, an IPO application is traded.
What is grey Market Premium?
The Grey Market Premium, or GMP, is the price at which IPO stock shares are exchanged in the grey market.
This could be correct or incorrect, implying that the grey market trading price is greater or cheaper than the issue price, depending on demand and supply for the stocks.
Typically, individuals who do not want to incur the risk of their shares not being allocated through an IPO can purchase shares on the grey market in the hopes of flipping them on the IPO for a profit.
What is Kostak?
The additional amount in rupees at which IPO applications are sold in the IPO Grey Market is known as kostak (or price of application). The bonus of a maximum lot retail application in an IPO is generally described as the ‘Kostak’ value.
The Kostak price is significant primarily before the offer is closed for subscription and the ultimate bidding status is made accessible to IPO participants. After the final auction status is known to investors, only a small percentage of IPO applications are exchanged.
‘Kostak’ is made for those who do not want to incur a risk on an IPO or gain from a listing.
Example:
Anand Rathi Wealth IPO
Issue Price: Rs 306 Per Equity Share (Maximum Bid price)
Lot Size: 45
Grey Market Premium: Rs 220 to Rs 230
Kostak (Rs 13770): Rs 680 to Rs 720
This means Anand Rathi IPO applications of Rs 13770 are being traded in IPO Grey Market at Rs 680 to Rs 720.
Despite the fact that this IPO’s Grey Market Premium is roughly 75% of the issue price, the ‘Kostak’ is just 5% of the application value.
Kostak rate
The Kostak rate is the fee received by an investor who sells his or her IPO application on the grey market. Regardless of allotment status, this is the money an individual stands to gain.
Subject to Sauda
The money that an investor stands to gain by selling his or her application for firm allotment is referred to as the subject to Sauda. Firm allocation is the important operative phrase here. The sauda will be cancelled if the applicant is not allotted.
When selling an IPO application in the grey market, the client and seller agree that the sale will only be legal if the seller receives the allocation. The deal is avoided if the seller does not get any stocks throughout the IPO procedure.
FAQ
Anand Rathi Wealth IPO Opening Date?
Anand Rathi Wealth IPO will open in 02 December 2021.
Anand Rathi Wealth IPO Listing Date?
Anand Rathi Wealth IPO will list in 14 December 2021.
Anand Rathi Wealth IPO GMP Today?
Anand Rathi Wealth IPO Grey Market Premium is INR 50.
Anand Rathi Wealth IPO Allotment Date?
Anand Rathi Wealth IPO basis of allotment will be in 10 December 2021.
Lot size for Anand Rathi Wealth IPO?
Lot size for Anand Rathi Wealth IPO is 27.
